Health Insurance Renewal
Health Insurance Renewal
Due to the increasing cost of healthcare in India, it is imperative that every individual has health insurance coverage.
This is also true for health insurance coverage, which must be renewed on a regular basis. There are now a number of insurance companies that provide customers with the option of renewing their health insurance online.
It is not only convenient to renew your health insurance online, but it also saves you a lot of time and money since it is a hassle-free process.
The timely renewal of a health insurance policy also ensures that the appropriate level of coverage is available to you at all times. If you would like to learn how to renew your health insurance coverage, continue reading this article.
Benefits of Renewing a Health Insurance Policy Before Expiry
- Continuous Coverage:
To maintain continuity of coverage, health insurance policies must be renewed on schedule. The insurer won’t pay for the medical costs if the coverage expires, and the policyholder risk losing the no-claims bonus.
Furthermore, by timely renewing the policy, the policyholder can continue to use the medical benefits even after they have reached the age at which they are no longer able to get new health insurance. - Tax Advantage:
Under Section 80D of the Income Tax Act of 1961, one may benefit from a tax exemption on the premium paid for health insurance coverage. One may be sure to avoid paying taxes on the premium amount by renewing the health insurance plan on time. - No-claim bonus stands intact:
If the insured does not submit a claim throughout the term of the policy, the policyholder may profit from the no-claim bonus provided by the insurance provider.
The insured provides the no-claim incentive, which is a discount that ranges from 20% to 100%, at the time of renewing their health insurance. During renewal, a discount is provided on the premium amount. - Waiting period:
The waiting period for specific ailments as listed in the policy document would be accounted only on continuous renewal of your health insurance plan. If there is a lapse, the waiting period continuity benefit cannot be availed. This is one of the most important benefits of renewing your health insurance policy on time.
Grace Period Benefits during Health Insurance Renewal
All policyholders receive grace period advantages when their health insurance is renewed. Even if your insurance has already ended, the grace period gives you an additional window of time to renew it. Most health insurance plans in India provide a 15- or 30-day grace period.
The policy doesn’t expire even though no insurance coverage is offered during the grace period. You risk losing your collected benefits, such as waiting period benefits, if you fail to renew your insurance, even within the grace period. However, if you wish to raise a claim within the grace period, you need to pay the premium first and then file a claim.
Things to Remember While Renewing a Health Insurance Policy
While renewing health insurance coverage, several different factors should be taken into consideration.
A person can take into account the following while renewing a health plan:
- Ensure that the policy is renewed prior to the due date:
There is a deadline by which the policy must be renewed. The insurance provider grants a grace period of 30 days for payment of the policy’s premium if it is not paid by the due date. During the grace period, if the policyholder does not pay the premium, the insurance policy will expire.
As per the regulations of the Insurance Regulatory and Development Authority of India (IRDAI), once the policy has expired, the insured person will not be covered by any form of health insurance. - Make sure the Health Insurance Policy’s Sum Insured is updated:
When the policy purchasers study the health insurance policy, they need to ensure that they are aware of the amount assured by the health insurance policy.
An individual has the option to raise the amount covered when renewing a policy if they are not happy with the amount that is currently covered under the policy. - Avail useful add-ons:
While renewing health insurance, one should also think about buying the appropriate add-ons. This is due to the possibility that your insurance provider will introduce new add-ons that meet your needs or that during the previous policy period, your demands may have changed. - Remind the family about changes in policy:
The policyholder must inform the family of any modifications made to the insurance once it is renewed. It is crucial to provide family members access to the policy information so they may use it in an emergency.
Work on adopting a healthier lifestyle. If you don’t live a healthy lifestyle, you are more likely to file a claim with your health insurance. Maintaining a healthy lifestyle will keep you in shape and assist you in avoiding claims.
What happens if you do not renew your policy on time?
If your health insurance coverage isn’t timely renewed, the following problems might happen.
- You will not be able to make a claim.
- There’s a chance your waiting period will be longer. This suggests that until the waiting period is over, you would be responsible for paying out-of-pocket charges.
- If you don’t renew for a longer amount of time (the grace period), your insurance will have expired.
- Your new policy’s premium might rise.
- Even if you didn’t file a claim during the preceding policy term, you might lose the NCB and the total covered could drop or stay the same.
- You might need to go through a health checkup under the new rules.
Can you transfer or port your health insurance policy before expiry?
When your health insurance is up for renewal, you can transfer it to a different insurance provider.
According to IRDAI requirements, all insurance companies in India are required to offer this service, which is known as “insurance portability.” It is recommended to submit a request for insurance portability at least 45 days before the current policy’s expiration date.
If there is a delay, the new insurance provider may deny your request for portability. Your no-claim bonus and waiting periods from your prior policy are also transmitted when you change health insurance providers.
The new policy’s waiting time is shorter than the waiting period covered by the old plan. You merely need to wait the remaining waiting time to make a claim as a consequence.
Reasons why Health Insurance premiums rise even on renewal:
- Age:
You may already be aware of the fact that a number of factors, including your age, affect the cost of your health insurance. Your health insurance renewal premium may, in certain situations, also increase due to your age. This is particularly valid for people who reach 60 during or right before renewal.
What can you do to combat it?
You can’t go back in time and get younger, but you can be careful about the amount of insurance you choose. You generally don’t need a lot of coverage if you’re still reasonably young, but your elderly parents could require more coverage if you have a plan for them.
Therefore, always adjust the sum insured for you and your family according to their age and medical requirements. - Inflation:
The Economic Times reports that healthcare inflation is increasing at a pace of 12 to 18%! This covers general expenses, including the price of prescription drugs, hospital admission fees, the price of different treatments, medical developments, and so on.
Due to the growth in these costs, your insurer must also raise your sum insured, or coverage, each year in order to pay for these fees when you file a claim. This is the main reason why, when you renew for a new policy year, your health insurance premium also goes up.
What can you do to combat it?
The bad news is that there isn’t much you can do about this as it directly relates to medical bills and the needed increase in your sum insured.
The good news is that some insurers do provide incentives and renewal savings based on your claim history. Check your policy paperwork or speak with your insurer to determine whether any of these perks are included in your plan. - Variation in cover benefit:
Depending on the terms and conditions of your insurer, you may decide to adjust your coverage and benefits when your health insurance is renewed.
You may decide to do this if you have just received a health condition diagnosis or if your personal circumstances have changed, such as if you plan to purchase a pregnancy add-on or discover you need additional coverage for another reason.
Therefore, your health insurance premium will also rise based on any changes you make, such as choosing an add-on or increasing your covered amount.
What can you do to combat it?
The best course of action in this situation is to thoroughly analyze your health insurance plan so that you may determine whether or not its features and coverage are appropriate for your evolving medical needs. With your current insurer, you can investigate and upgrade to other plan possibilities as well.
To determine whether there is another plan that is more suited for your present scenario, you might also examine various health insurance policies online. - Claim History:
Depending on how many claims you’ve filed over the course of the year, some insurers will raise your health insurance rate. It’s possible that not all health insurance operates in this manner. Open your policy booklet and look at the claims section—or the area where your terms and conditions are listed—to see if your health insurance boosts your premium depending on your claim history.
What can you do to combat it?
There isn’t much you can do with your current insurance because it is part of their terms and conditions if your insurer increases your rate based on your claim history.
You may, however, think about switching to a different health insurance plan that does not have this restriction. Since porting is something you can only do at renewal, consider your other options and choose wisely.
You already know that the most likely scenario is that the cost of your health insurance will at least somewhat rise due to inflation. However, the majority of health insurers also take into account your health during the last year and compensate you accordingly.
Similarly, if you just received a diagnosis of a condition that may demand extra coverage, certain health insurers may raise your renewal price.
Health insurance renewal process:
A. Online Process:
In the era of the internet, renewing your health insurance is a simple and quick procedure. Let’s go over how to update your insurance coverage while you’re on the move:
- Go to the payment URL you were sent through email or log in with your credentials.
- Describe the policy’s number and expiration date in plain terms.
- Choose the payment method you want to use, such as a credit or debit card, net banking, UPI, etc.
- You receive the payment acknowledgement receipt and policy details on your registered email ID after successful payment.
B. Offline process:
Online health insurance renewal is an option, but you also have offline payment options. It is also possible to visit the insurer’s branch and pay by demand draft or check. Cash payment is accepted only upto a specific limit only.
Factors to Consider While Renewing a Health Insurance Policy:
- Sum Insured Enhancement:
If the policyholder is dissatisfied with the policy’s current coverage level, he or she may choose to increase it. - Health Insurance Coverage:
The policyholder can review their current health insurance coverage and change it in accordance with the requirements of their current medical condition. - Policy Upgrade:
Upgrade your policy to a different health insurance plan in the event that you are unhappy with your current coverage. - Renewal Terms:
Review the policy’s renewal terms at the time of renewal to ensure that there are no inconsistencies. - Health Insurance Portability:
It allows the policyholder to change insurers if they are dissatisfied with the present company’s services.
Tips to avoid lapses in health insurance renewal
- It is a good idea to set a reminder on your personal device. When you purchase health insurance coverage on the day of purchase, you must follow a simple procedure. It is a good idea to set a reminder for the expiration date (or a few days before) so you don’t forget to renew.
- As a result of the increasing concern about spam, individuals are less likely to answer a call from an unknown number these days. It is possible to install any of the available programs that allow you to see who is calling before you answer the phone.
- You could opt for ECS or standing instructions so that your premiums are renewed on time every year without your intervention.
Conclusion
It is becoming increasingly important for families to have health insurance coverage today in order to ensure their financial stability in the event of a medical emergency.
In other words, by timely renewing their health insurance coverage, a person is able to protect their family’s financial future from any unexpected medical costs that may arise in the future.
Frequently Asked Questions
No, it is not required by law in India to purchase or renew health insurance. However, since it offers financial support in the event of a medical emergency, you should always protect yourself with a solid health insurance plan.
Of course, you can set s standing instruction or ECS for automatically renewing your policy every year. However, you can choose to check the coverage details of your health insurance plan every year and upgrade as per your requirement.
Yes, there are situations when premium increases are significantly influenced by age. This may occur if you are approaching a specified age range, for example, if you turned 60 during the policy period and are now trying to renew the plan. Age would be a significant consideration here.
You lose perks and coverage if you don't renew your health insurance plan. As a result, it is suggested that you pay the renewal payment far in advance. Most insurance companies send timely emails for reminding you to renew on time along with text messages to your registered contact information.
Due to the fact that most insurers allow you to pay your premium online, you can choose from a wide variety of payment methods. Furthermore, they make the process of renewing your health insurance easy for you, so you don't need to worry about it. It is not necessary for you to visit a branch of the company in order to maintain your health insurance coverage.
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